Question

Question no.1 The case: The demand of the masks in Pakistan was already on the rise after surge in its demand in China and other coronavirus-affected parts of the world. The suppliers are getting daily queries for exports of masks from different parts of the world, especially Thailand, Singapore and Malaysia. The local manufactures are unable to meet the domestic demand with an unprecedented demand for masks locally. There are many firms who have shifted their businesses towards masks production. Suppose the market demand function for a firm to produce masks is given by: P= 3-0.05Q AC= 15/Q +8-0.6Q+0.08Q2 1. Find output Q which gives Maximum TR 2. Maximum marginal cost 3. Maximum profit

Answer 1

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Marginal cost is a term used to describe the change in total costs of production resulting from the addition of one item. ... It is closely related to marginal cost pricing, in which prices are set at an amount equal to the marginal cost.